EDF filed a legal challenge to FERC’s approval of the Spire STL project in January. FERC allowed Spire STL to complete construction and begin operating the pipeline despite serious legal concerns. EDF sought rehearing of that decision, which FERC denied. Instead of rigorously analyzing whether the public interest will be served, FERC performed an illusory ‘analysis’ that rubber-stamped an unnecessary pipeline based solely on the existence of an affiliate precedent agreement that required captive ratepayers to support a project that benefits’ the affiliates’ owner. The aligned interests of the affiliates, and the ability to pass costs through to captive customers, would put any reasonably vigilant regulator on high alert. At a minimum, it would trigger FERC to perform some analysis of whether the affiliate relationship diminished the evidentiary value of the precedent agreement when evaluating need. But a majority ignored the potential for affiliate abuse entirely.”įERC issued its initial approval for the Spire STL project in August 2018. “FERC’s orders represent an abdication of its statutory obligation to protect the public by ensuring that new interstate pipelines will serve a genuine need. In explaining to the court why FERC’s action was unlawful, EDF writes: A Spire East Missouri customer using 100 Ccf of natural gas in a given billing month will see a line item increase of approximately 0.85 a month on their bill. “When FERC relies exclusively on an affiliate contract to justify need for a pipeline, as it did with the Spire STL project, it threatens market integrity and harms ratepayers, who ultimately end up footing the bill for unnecessary gas infrastructure.” “FERC unlawfully approved the Spire STL pipeline without a sound determination that the project is in fact needed,” said EDF attorney Erin Murphy. FERC’s failure to perform its statutory duties leads to a host of negative consequences for local communities and the environment. 3/8/21 a high bill investigation was completed. In the case of Spire STL, FERC failed to engage in a rigorous determination of need, basing its approval solely on a contract between Spire STL and its affiliated company, gas utility Spire Missouri. No leaks were located the technician confirmed the gas appliances onsite were a tankless water heater and range. In carrying out its statutory duty under the Natural Gas Act, FERC must determine whether a pipeline is in the public interest before approving the project. Circuit to overturn FERC’s approval of the project. (WASHINGTON, D.C.) Environmental Defense Fund is challenging a decision by the Federal Energy Regulatory Commission (FERC) to approve the Spire STL project, a 65-mile long gas pipeline in Illinois and Missouri.
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